The global blockchain market is growing at a faster annual growth rate due to the higher rate of adoption technology and digital transformation initiatives. The blockchain technology (also known as Distributed Ledger Technology or DLT) has been redefining the businesses across the world in all of the industrial verticals. Currently, the technology has dominated the fintech sector and embarking into other sectors such as elections, insurance, and retail etc.
According to some research firms, the blockchain technology with a faster acceleration has been expected to cross USD $28 billion mark by 2025 from USD $ 411.5 million in 2017. It is projected to register an annual growth rate (CAGR) of 79.6% and the key factors driving the disruption are reduced cost of ownership, simplified business processes, faster transactions, cryptocurrencies, initial coin offerings (ICO) and higher rates of adoption of Blockchain-as-a-Service (BaaS).
IT companies have been helping industries, companies, startups to adopt the blockchain technology by providing their services to build PoC and applications. These companies are providing significant value to the businesses across the world by leveraging technology such as a cloud-based network to allow for efficient transactions. The blockchain technology or distributed ledger system is considered as more secure, effective and transparent. Moreover, the adoption of the technology will bring more efficiency. BaaS will be useful in building efficient applications for companies to implement blockchain technology in the business endeavor.
As per some of the experts and reports, the blockchain technology is getting momentum in North America. However, Asia-Pacific region is the favorite destination for blockchain enthusiasts and entrepreneurs as the blockchain technology is expected to witness robust growth in this region by 2025. Korea and Japan are embracing blockchain technology and cryptocurrency. And, the technology is playing a vital role in transforming industries like finance and supply chain.
The companies have been developing PoC and applications using blockchain technology to automate, to make business transactions more secure and seamless business operations. Following are some of the types of applications are developed so far using the technology.
The blockchain technology or DTL has brought a revolution in the Fintech industry. The solutions have transformed the peer-to-peer transactions and made it more secure than ever before. Fintech companies and other financial institutions including banks are considering the blockchain technology as innovative technology. These companies are considering the application of blockchain technology is a game changer. So far, many PoCs have been developed by the companies to test the impact of the implementation in their business. The use of cryptocurrencies like Bitcoin is the best example of gauge the impact of the technology on business and its transformation.
Smart contracts are the automated agreements. These contracts are considered as a game changer in the business. Using smart contracts companies can eliminate the intermediaries and make the process more transparent. Two parties could sign and execute the agreements based on their mutual predetermined conditions without entertaining any authority or intermediaries. Using the agreements companies can transfer money, data, property deeds, and shares. The smart contracts on the distributed ledgers are considered as secure and transparent. It is believed that the concept of smart contracts was invented by the Ethereum network. This application could disrupt sectors like insurance and real estate.
In this digital world, the digital identity is indispensably necessary. The blockchain technology will be a secure technology which would be secure. Certain organizations like banks and government agencies have a mandatory process of maintaining KYC documents. In such a scenario, a unique digital identity on a secure and distributed ledger will be useful. The technology like blockchain will enable the storage of the sensitive personal data and provides a vital link for the further executive like transferring assets or to give access to the profile. The technology would be useful in managing the universal digital identity of the people in order to carry out their activities.
Above are a few use areas where the technology is being implemented. We have covered the implementation of blockchain in our earlier post entitled “Implementation of Blockchain Technology in Top 20 Areas”, where we highlighted the implementation in the areas: Cryptocurrency – digital currency, government, waste management, voting, border protection, enterprise, music industry, environment, national security, tourism, supply chain, land registration, railways, smart cities, taxation, real estate, insurance, car leasing, and retail.
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